XRP, the native token of Ripple, has been in a tough patch where its price has struggled for years due to the network legal issues with the SEC. The struggles are not ending for this 7th biggest cryptocurrency, as the ongoing market crisis has brought it down to $0.4734 after a 12% decline in the month.
Though XRP was not profiting even before this decline, the situation is worse. Now, the XRP supply has dropped to the lowest in months while the price is in a downtrend.
XRP Exchange Supply Turns Lowest Since January
The rest of the cryptos have been somewhat bullish this year, but that is not the case with XRP price, as it is in a 23% decline since the start of the year. Also, the XRP supply has declined by 1% on all the exchanges to 2.84 million XRP, which is worth $1.34 Million. It is the lowest value the exchanges have maintained since January 1. It is a direct indication of the investor’s frustration with the crypto.
With the declining market condition, there are a few possible reasons behind this heavy drop in the supply, including investors’ preference for self-owned hardware wallets, cryptocurrencies holding in the expectation of higher gains, and Staking.
In the last 11 days, the investors have lost more than $30 Million with their XRP holdings. The loss is the result of the token distribution amid the market crunch, which is not a good sign, as it is an indication of the market capitulation.
XRP Technical Indicators Are Constant With Bears
Despite many investors’ hopes of a recovery, XRP has not moved bullishly for long and might continue the same downtrend based on the technical indicators representing the bear’s dominance. The MACD (12,26) level, Momentum (10), and all the moving averages from the 5-200 range indicate the bears, favoring the loss in the future as well. Moreover, the network is continuously decreasing, bringing the trading volume down as well. As of now, the TV is at $860 Million after a 27% decline, not to forget the decrease in exchange supply.
Based on the present price pattern, the XRP price might decline to $0.45 next, and if the trend continues, it can drop to $0.41, a low last seen on April 7. However, if XRP could surge to $0.49, it can be pushed further to $0.51 or higher.
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The post XRP Supply on Exchanges Drops To Months Low; Price To Hit Rock Bottom? appeared first on CoinGape.
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